When you select your Investment Elections, you are defining what Index Funds you want to buy from this point forward. Any new contributions that are received in your ShareBuilder 401k account will automatically be invested according to the percentage breakdown determined by your portfolio. You will have the opportunity to change your Index Fund selections at a later date if your investing goals change.
To help you get started, 5 model portfolios have been created by Capital One Advisors, LLC. These portfolios have been created to align with 5 common investor profiles that are often used to define one's investing style or goals. In addition, you have the option to select the investments on your own, which will allow you to create a custom portfolio from the list of available Index Funds.
Note: Please note that your investment choices will only affect future investments that are initiated by new contributions of funds, unless you have selected our Automatic Rebalance feature. If you do not wish to use Automatic Rebalance, you also have the option of manually rebalancing any positions held in your account.
Although Capital One Advisors, LLC, carefully evaluates the make-up of the model portfolios on a regular basis, ShareBuilder 401k makes no representation regarding the likelihood or probability that any or all of the portfolios will in fact achieve a particular investment goal or fulfill the risk tolerance profile as described for each portfolio. ShareBuilder 401k is unable to predict or forecast market fluctuations or other uncertainties that may affect the value of any investment and is prohibited by law from making such predictions or projections.
As a self-directed investor, you must carefully consider the merit of a 401(k) plan and the appropriateness of the available investments under your employer's plan in light of your own personal financial circumstances, including your other assets, income and investments (e.g. equity in a home, IRA investments, savings accounts and interests in other qualified and nonqualified plans), cash flow needs, tax circumstances, or other complex or subjective concerns. You are urged to use all available resources to educate yourself about investing in general, these investment products in particular, and the composition of the model portfolios.
As an alternative to the model portfolios, you can combine individual Exchange Traded Funds offered in the ShareBuilder 401k to create a customized portfolio with a risk and return profile similar to that any of the model portfolios, although you should consider obtaining the assistance of a qualified investment advisor in doing so. Monitoring and adjusting your ShareBuilder 401k investing plan to suit changing circumstances is your responsibility, and it is recommended that you reassess any investing program on a regular basis to ensure that it remains consistent with your current financial resources and investment objectives.
If you still have questions about this topic or want additional information about ShareBuilder 401k, please contact our Customer Care team at 1-800-943-6108. Our agents are available from 9am - 8pm (Eastern Time), Monday-Friday, except for market holidays.